Unit 4 Assignment on Management and Operations RAC

Program	Diploma in Business
Unit Number and Title	Unit 4 Management and Operations RAC
QFC Level	Level 4

Introduction

Management and operations RAC assignment report is about the services provided by RAC (Royal Automobile Club) to the people whose vehicles broke down on various places. This is the company who has run it operation for more than hundred years and laws established its name in this field. It stands the second position after AA (Automobile Association). Apart from that a new competitor’s entry has also trouble the company like company named Green Flag who has popularized its name by the help of advanced technology and advertisement. So by this  management and operations  report an analysis of all the operational activities, strategies and all the matter would be focused and scrutinized. At the end of this report all the process of management in regards to operation be scrutinized and recommendation its flaws be made to it.

Main content

1. Describe the operational characteristics of RAC monitoring and define the operation strategy of ROC.

Operational characteristics: Operational means day to day activities of the company in regards to maximizing its profit and work for the growth of the company. There are certain characteristics associated with the operational working of RAC. They are listed below-

• It is major goal is on enhancing customer satisfaction.
• It always try to reach on time to fix the problems of vehicles break down and carry out effective steps to achieve the same goals.
• It always tries to attract the young market to increase its customer base (Hill et.al 2o12)

Operation strategies of RAC: There are various marketing strategy formulated and implemented by the RAC for the better and effective performance to be anchored in the competitive market and lead to the success rate. These operational strategies are mentioned below-

New strategies- new and significant policies are made for the purpose of making dynamic and colorfulschemes and plans.

Patrol management – RAC has tries various ways to manage the patrol for providing services to its customer. For better providing of services, company has divided its working on geographical area wise so that customers requiring services can be reached within time.

Work bifurcate- Every work is distributed to the patrol as per there limits. Like patrol has to not worry about the next shift as some other can replace it without any hurdles.

Appointing contractors- contractors were appointed so that work may be managed easily. But these contractors are not as efficient as RAC due to which this technique is mostly avoided by the

Stand by option – this will help in case of emergency when a standby would be present that would help in focusing on problems for fixing vehicles (Collier et.al, 2014)

2. Create a process map describing the call out service at RAC and identify the factors contributing to poor customer satisfaction.

Process of call out service

Step 1 – An aggrieved customer make the call to the RAC for assistance.

Step 2- Then this call is received by the server of the RAC department.

Step 3- Server then divert the call to the control room where authorized person is present.

Step 4- Person authorizedfor receiving the calls are hear the problem faced by the aggrieved customer and take necessary details such as locations address, status of damage or breakdown of vehicles.

Step 5- Available patrol in that geographical cell is contacted and all the details in relation to the problems are forwarded to him along with customer information.

Step 6- The last step is when patrol contact the customer and intimation is given of its arrival.

Factors affecting poor satisfaction to customers: Call out services has certain problems that lead to unsatisfied customers.

• RAC has used the services of contractors in their working during hectic schedule but they are not as effective and compatible as RAC that creates the problem.
• They are still incapable of picking up call on time of customers in need. They are not as capable as AA (Automobile Association).
• They are still facing problem in delivering the services to the customers efficiently. They are not able to reach on time to the customers that leads to the unsatisfied customers (White, 2013)

3. Perform a risk analysis for vertical integration option at RAC by creating a probability impact matrix.

Vertical integration is a type of merger in which a business combines vertically. They either combine with their supplier or with their distributors. This is a very complex procedure and many risks are involved with it. As this integration does not work effectively then revert option would be more complex, hectic as well as expensive. RAC is a road assistance company that deals with providing help to the customers who are in need for their vehicle break down. So for this concern many patrols are taken into consideration for better service. Due to excessive needs of van and cars for patrolling company best option is to integrate itself with an automobile company that would help by providing vehicles for patrolling. This is an option that would help to minimize its expenses as car repairs and all other issues be easily be solved by it. Even in such cases there are more chances that car cost can easily be maintained. But there are certain risks that may create the problem. For ascertaining the risk involved, the best approach is to analyze the risk by the creation of a probability impact matrix. This is a matrix that is based on two pillars. They are probability and its impact. These both factors constitute in the better analysis of the risk involved with certain projects. There are certain risks involved with it such as (lQahtani, S.A. 2016)

• High cost- that may affect the profit of the company. It ultimately leads to create hurdle in the growth of the company.
• Scope- The purpose for which it is integrated must be fulfilling. But there are always the chances that the goals and motives in relation to it may not be attained. So risk in this case is high.
• Time- This integration is a hectic procedure in which various formalities along with time are put in it. This may leads to withdraw focus on the more important matters that are not beneficial for the company (Ma, F.J. 2014).

Calculation of risk and profitability index:

s.no	Risk	Occurrence likelihood		Impact		Degree of risk
		probability	Score	Probability	score
1	Cost	Very low	1	Very high	5	E
2	Scope	Low	2	High	4	D
3	Time	Medium	3	Medium	3	C
4	Quality	High	4	Low	2	B
5	Goodwill	Very high	5	Very low	1	A

 

	Low	Medium	High
Low	E	D	C
Medium	D	C	B
High	C	B	A

There is risk associated with the project but if proper measures are taken into consideration then there are chances that it may be helpful (Le, J. & Prékopa, A. 2015)

4. What are your overall recommendations for improving quality at RAC?

With the study of this report it was certain that there are various loopholes in the RAC structuring and its formulation of operation due to which there is problem in the growth and development of the company and its existence in the long run. So for this purpose there are certain recommendations that may help to overcome its entire hurdle that existed in the company in present scenario. These hurdles as well as their recommendations are mentioned below-

• It can plan its working as per the peak season so that proper measure can be given to the areas and problems be solved accordingly. Like in peak season patrol staff be more and there alertness be in significant amount.
• Customers are not satisfied with the delay in response in regards to both picking up of call and delivering of services in time. So better and more effective technology is taken into consideration so that working level is increased.
• Appointment of contractors leads to unhappy customers. So contractor appointment is avoided by the RAC.
• Patrols are managed by implementing better and effective policies so that proper working is taken into consideration such as effective standby.

Conclusion

This company provides assistance facilities to the customers whose vehicles broke down.  For this issue customers are dependent on these services. RAC operational activities and strategies need to be formulated and implemented. Already existed strategies are revised on proper time interval. Call taking time and delivery of the services required excessive focus. By this company may increase the level of satisfaction of the customers and can succeed the AA company. Company also required taking into consideration all the recommendations so that a better and effective growth and success of the company be accomplished.

References

AlQahtani, S.A. 2016, "Delay Aware and Users Categorizing-Based Call Admission Control for Fu, Y., Li, M. & Chen, F. 2012, "Impact propagation and risk assessment of requirement changes for software development projects based on design structure matrix", Project Management International Journal of    , vol. 30, no. 3, pp. 363-373.
Collier, D.A. & Evans, J.R. 2014, OM: operations management, 5th ; student 5.edn, Cengage Learning Australia, South Melbourne, Vic.
Hill, A. & Hill, T. 2012, Operations management, 3rdedn, Palgrave Macmillan, New York;Houndmills, Basingstoke, Hampshire;.
Hong Kong Institute of Bankers (HKIB), Hong Kong Institute of Bankers & Books24x7, I. 2013, Operational Risk Management, John Wiley & Sons Inc, SG.Lee, J. & Prékopa, A. 2015, "Decision-making from a risk assessment perspective for Corporate Mergers and Acquisitions", Computational Management Science, vol. 12, no. 2, pp. 243-266.